Antecedents and consequences of opportunism in buyer–supplier relations: Research synthesis and new frontiers

Buyers and suppliers must concern themselves with opportunism, a phenomenon empirically established in exchange relationships. What causes firms to behave opportunistically? What are the consequences of firms' opportunistic behavior? To date, these antecedents and consequences have not been comprehensively synthesized. Herein, the opportunism phenomenon is revisited to expose research gaps and chart new directions that will enhance our understanding of buyer–supplier relationships. First, we provide a brief review of two critical theories of exchange that provide a theoretical foundation for opportunism. We next provide an overview of opportunism. Then each of the antecedents and consequences is discussed with emphasis on the contribution of each finding. Finally, and most importantly, several promising paths for further research are proposed.     

Becoming a preferred customer one step at a time

A preferred customer is a buying organization who receives better treatment than other customers from a supplier, in terms of product quality and availability, support in the sourcing process, delivery or/and prices. The decision to become a preferred customer implies a continuous commitment by the purchaser to a complex, expensive and often uncertain process. It is important to use a strategic approach, as well as appropriate tactics. Based on well-known models on the development of buyer-supplier relationship, on customer portfolio analysis and on the emergent literature in customer attractiveness and preferred customer status, we suggest four steps to become – and remain – a preferred customer: initial attraction, performance, engagement and sustainability. The process takes the perspective of a buyer willing to obtain the preferential status and focuses on the strategies and tactics that could influence the supplier's decision of granting this status. The proposed process considers that the supplier is continuously comparing the value offered by the customer to its expectations, and to the value offered by other customer relationships.     

The role of boundary spanners in the formation of customer attractiveness

This paper examines the question of how to understand the formation of suppliers perceived customer attractiveness. It argues that existing conceptualization of buyer–supplier relationships are too simplistic to understand the full complexity involved in the formation of such perceptions, and models the buyer–supplier relationship as a set of micro-dyads and intra-, inter-organizational exchange relationships. In exploring these micro-dyads this research apply an embedded case study approach and explores three buyer–supplier relationships. Following Bacharach et al. [Bacharach, S.B., Bamberger, P., & Sonnenstuhl, W.J. (1996). The organizational transformation process: The micropolitics of dissonance reduction and the alignment of logics of action. Administrative Science Quarterly, 41(3), 477–506.], it is interested in the involved actors sense-making processes and the concept of “logics of action” is deployed. The analysis demonstrates how suppliers' formation of perceptions related to customer attractiveness can be understood as constituted through a set of discrete historical means/ends alignments and misalignments between boundary spanning roles in the involved organizations.     

The relationship between supplier management and firm's operational performance: A multi-dimensional perspective

This paper presents an empirical study on the multidimensional relationships between supplier management practices and firm operational performance. Specifically, we focus on three supplier management practices, namely strategic long-term relationship, supplier assessment, and logistics integration, and test their effects on four operations performance measures, namely quality, delivery, flexibility, and cost. We use data collected from 232 manufacturing firms in Australia to conduct the study. Ten hypotheses were tested simultaneously using Structural Equation Modeling (SEM) technique. The results show that different supplier management practices have different unique effects on different operations performance measures. Supplier assessment has a positive relationship with quality performance. Both strategic long-term relationship and logistics integration have positive relationships with delivery, flexibility, and cost performance. From a theoretical perspective, this study demonstrates the relative contributions of different kinds of resources (i.e., supplier management practices in our case) to different performance measures. Our research findings provide practical insights for managers to understand the effectiveness, as well as the limitations, of different supplier management practices in enhancing different operations performance measures of firms.     

Enabling relationship structures and relationship performance improvement: The moderating role of relational capital

Based on data from 248 asymmetric subcontractor–customer relationships in Finland, this study analyzes the direct impact of relationship structures, relational capital, and the subcontractor's relationship-specific investments on the improvement of operational relationship performance. In addition, the study investigates the moderating role of relational capital on the links between relationship structures, relationship-specific investments, and relationship performance improvement. We found that both relational capital and relationship-specific investments directly affect the relationship performance improvement, while relationship structures do not. However, relational capital positively moderates the link between relationship structures and relationship performance improvement by creating enabling structures. Thus, our findings contribute to the existing literature and discussion on enabling organizational and relationship structures by demonstrating how relational capital changes the role and impact of relationship structures.     

Towards an understanding of attraction in buyer–supplier relationships

This paper explores how firms are attracted to one another within buyer–supplier dyads. It draws attention to ways of managing in a relational mode as an alternative to managing in a controlling mode. This study argues that in order to improve value creation and value transfer in buyer–supplier relationships it is not enough to optimize and coordinate management and control systems. Following Dwyer et al. [Dwyer, R., Schurr, P.H. and Oh, S. (1987). Developing buyer–seller relationships. Journal of Marketing, 51: 11–27.], it argues that mutual attraction is important in developing relationships. It is also argued that this can be achieved through a range of perceptual approaches and actions, which enhance performance between the parties involved. A conceptual model of attraction is developed with theoretical underpinnings in social exchange theory. It proposes three behavioral constraints: expected value, trust, and dependence. These components of attraction interact to draw dyadic parties closer together or push them apart. Finally, implications for research and practice are discussed.     

The impact of supplier development on buyer competitive advantage: A path analytic model

As manufacturing firms increasingly realize that supplier performance is crucial to their establishing and maintaining competitive advantage, supplier development has been a subject of considerable research in supply chain management. We develop and test a path model to explore how supplier development practices affect buyer-supplier performance from the buying firm's perspective in the context of Hong Kong's electronics industry. The results show that top management, supplier evaluation, and supplier strategic objectives are significant determinants of transaction-specific supplier development, and that buyers that have closer collaborative relationships with suppliers may strengthen their competitive advantage.     

Exploring the impact of a supplier portal on the buyer-supplier relationship. The case of Ferrari Auto

This article concentrates on the relationship between companies and their suppliers with a specific focus on the impact that information and communication technologies (ICTs) have on industrial (business to business) purchasing processes. After reviewing the extant literature, we classify the potential impact of ICTs on the buyer-supplier interactions into three main categories, i.e. impact on buyer-supplier relationship, impact on purchase process efficiency and impact on logistics process performance. Whilst scholars generally agree on the impact ICTs may have on buyer-supplier exchanges, they have not investigated concurrently all of these three impacts to understand their comparative relevance and the context in which this comparative relevance may change. In order to redress this gap in the literature our research study focuses on a particular form of ICT solution - supplier portals - and takes a supplier (rather than buyer) perspective. We explore empirical evidence from a single customer-multiple supplier case study, that of the Ferrari Auto supplier portal. Our study leads us to contend that suppliers view such portals as offering far more significant benefits to their relationship with customers than to the improvements in purchase process efficiency or to the performance of buyer-supplier logistics processes. We conclude with a short discussion of the main managerial implications and suggestions for future research.     

Strategic relationships between boundary-spanning functions: Aligning customer relationship management with supplier relationship management

This review focuses on the potential impact of enhanced strategic relationships between the boundary-spanning functions in supplier organizations. Specifically, the concern is with alignment between the organizational groups managing: marketing, sales and strategic account management; purchasing and supply strategy; and, collaborations and external partnerships. The topic is framed by the organizational evolution being driven by market change, and the search for superior innovation capabilities and business agility. These changes bring new challenges in cross-boundary integration and managing complex market networks. The logic is that strategic external relationships (with customers, supplier and partners) should be mirrored in strategic internal relationships (between the functions with lead responsibilities for managing relationships with customers, supplier and partners). Approaches to enhancing this capability include process management, internal partnering strategies and internal marketing activities. The discussion identifies a number of implications for practice and new research directions.     

The effect of buyer behaviors on preferred customer status and access to supplier technological innovation: An empirical study of supplier perceptions

Buying firms are increasingly looking to suppliers for technological innovations that enhance the competitive position of their new products. However, extant research provides limited guidance on how buying firms may gain access to suppliers' innovative technologies. To address this gap in the literature, we draw from social exchange theory to posit sequential relationships among buyer behaviors, preferred customer status, and supplier's willingness to share technological innovations. We test our assertions by applying structural equation modeling statistical analyses to survey response data from 233 sales personnel of production good suppliers in the U.S. automotive industry. Whereas our results show that two buyer behaviors – early supplier involvement and relational reliability – positively affect preferred customer status, a third behavior – share of sales – has no effect. In turn, we find that preferred customer status is positively associated with supplier's willingness to share new technology with the buyer. Further, our findings indicate that preferred customer status fully mediates the benefits exchanged within a buyer–supplier relationship. Hence, our study highlights why buyers seeking innovations should take care that their behavior is appropriate for managing suppliers' perceptions. Accordingly, our results provide specific guidance to buyers as to how they may increase their access to suppliers' new technologies.     

The development and diffusion of customer relationship management (CRM) intelligence in business-to-business environments

CRM data is among the most important and comprehensive information available to management in many organizations. This is particularly the case in business-to-business marketing, where the firm's extended working relationship with its customers is frequently crucial for the maintenance of a healthy business. However, in many instances management has treated CRM data as highly specific to its client relationships and has therefore neglected to analyze this information across market segments, customer categories, and customer–firm relationship forms in order to draw meaningful conclusions for driving business decisions.     

Bridging inter- and intra-firm boundaries: management of supplier involvement in automobile product development

Outsourcing has become an important strategy for many firms. Yet, firms need to compete with their competitors who also outsource and may share the same suppliers. This article explores how a firm could outperform others in managing the division of labor with a supplier in product development. Drawing on the empirical data collected from the Japanese auto industry, this paper shows that an automaker needs capabilities to coordinate various activities both externally with a supplier and internally within its own organization, in order to gain better component development performance. Overall, the results imply that outsourcing does not work effectively without extensive internal effort. Copyright © 2001 John Wiley & Sons, Ltd.     

Leveraging supplier capabilities: The role of locus of capability deployment

This study adds to the resource‐based view by studying how client firms may gain performance benefits from supplier IT capabilities in market‐based arrangements where the supplier's IT capabilities are readily available to multiple client firms. I argue that the locus of supplier capability deployment, i.e. whether supplier capabilities are deployed at the client (in‐sourcing) or supplier (outsourcing), has implications for client firm performance. The findings show that in‐sourcing leads to complementary effects between supplier IT capabilities and client operational capabilities. In contrast, clients with weaker operational capabilities benefit from outsourcing the respective activity to the supplier, and may even be able to reduce their capability disadvantage through outsourcing. The data on 964 U.S. credit unions contracting with 22 technology solution providers is archival. Copyright © 2012 John Wiley & Sons, Ltd.     

Making partner relationship management systems work: The role of partnership governance mechanisms

While the adoption of Partner Relationship Management (PRM) systems by suppliers to manage and monitor its network of partners (i.e. resellers) has been on the rise, the performance improvements have not been consistently realized. Governance theory suggests this may be due to how the PRM system builds on the mechanisms employed by the supplier to oversee their partners. This study investigates how the two capabilities of PRM systems (relationship and fulfillment capabilities) and two partnership governance mechanisms – formal (certification control) and informal (service support) – reinforce each other. These are then related to partner performance in terms of trust, commitment and customer satisfaction. Analysis of data collected from 192 partners in the information and communications technology (ICT) sector suggest a complex relationship. In terms of direct effects, a relationship capability increased trust yet, surprisingly, a fulfillment capability reduced commitment. In terms of moderating effects, certification control weakened the positive link between the relationship capability and performance. Service support, on the other hand, negated some of the detrimental impact of the fulfillment capability on performance. The results suggest the need of to tailor PRM systems in response to the specific performance expectations around them as well as a need to clearly understand how existing partnership governance mechanisms employed by the supplier will affect the performance of these systems.     

供应链关系资本对企业创新绩效的影响研究——基于需求拉动型吸收能力的视角

针对受国外技术和市场牵引较严重的4个制造类企业,构建了供应链关系资本、需求拉动型吸收能力和创新绩效三者间的概念模型,实施问卷调查,用结构方程模型验证假设。得到的结果表明:以信任为基础的供应链关系资本能够促进企业及时获取和掌握市场信息和技术知识,从而提高创新绩效。但是,样本企业供应链关系资本中的关系承诺维度对知识吸收的促进作用有待加强;需求拉动型吸收能力的知识转化和利用环节对于创新进程的促进作用有待提高。     

The role of relational capabilities in the organization of international sourcing activities: A literature review

Multinational companies (MNCs) establish subsidiaries in various countries, spreading the value chain internationally and fostering the involvement of external partners. The global supply network has become a major source of the total value generated by MNCs, which are pushed to develop “relational capabilities” to interact with their suppliers. The main objective of this article is to assess the current understanding in the academic literature of the intra-organisational dimension of relational capabilities, focussing on the adoption of internal mechanisms supporting international sourcing activities. A total of 47 articles are identified and assessed. The literature review shows that thus far fragmented and in some areas limited research has been conducted on the development of relational capabilities by MNCs within international sourcing activities. Research efforts have been placed mainly on the examination of organisational units active in international sourcing and on control and management processes, while less attention has been paid to knowledge management solutions.     

供应链关系资本对企业创新绩效的影响研究

针对受国外技术和市场牵引较严重的4个制造类企业,构建了供应链关系资本、需求拉动型吸收能力和创新绩效三者间的概念模型,实施问卷调查,用结构方程模型验证假设。得到的结果表明:以信任为基础的供应链关系资本能够促进企业及时获取和掌握市场信息和技术知识,从而提高创新绩效。但是,样本企业供应链关系资本中的关系承诺维度对知识吸收的促进作用有待加强;需求拉动型吸收能力的知识转化和利用环节对于创新进程的促进作用有待提高。     

Duration and relational choices: Time based effects of customer performance and environmental uncertainty on relational choice

This paper investigates the influences of customer performance and environmental uncertainty on the customer's choice of relational exchange strategies over the duration of their relationship. Relational exchanges of short, intermediate, and long term duration are investigated with the results showing different performance outcomes and environmental factors impacting relational choice at different times in the relationship. The results help explain conflicts reported in prior relational exchange research and provide valuable insights for practitioners responsible for managing relational exchanges.